Automated Valuation System for Real Estate Tax Appeals

Transcription

1 Automated Valuation System for Real Estate Tax Appeals Arvydas BAGDONAVICIUS, Steponas DEVEIKIS, Rimantas RAMANAUSKAS, Lithuania Strategies for Successful Implementation Real Estate Tax TAX PAYERS EXPERTS AND CONSULTANTS Correct information; Wish to co-operate; Independency. HARMONY MASS MEDIA Motives to pay taxes; Information; Lobbying; Right to appeal. APPRAISER Comprehensive information for decision-making and forecasting; Common understanding. STATE 1

2 Nominal Land Value and Market Value by Mass Appraisal (2003) Nominal Land Value Avg Market Value Commercial (Lt/100 sq.m) Residential (Lt/100 sq.m) Industrial,warehousing (Lt/100sq.m) Gardening (Lt/100 sq.m) Agricultural (Lt/ha) Public Opinion Concerning Land Values I have no land Will try to avoid taxes Will pay taxes Will sell part of land Will sell all land I do not know I have no land Will try to avoid taxes Will pay taxes Will sell part of land Will sell all land I do not know Source: Press Agency, 2 October

3 Results Presentation via Internet PROPERTY ID ACCORDING TO TYPE OF USE MUNICIPALITY OR VALUE ZONE Value Map for Commercial Use of Land 3

4 Value Zone with Average Market Values Mass Appraisal Result for Property Unit 4

5 Appraisal Models Value Spreadsheets for Cadastral Survey 5

6 Possibility to Provide On-line Feedback List of Opinions Provided via Internet ZON_NR OBJ_ADRESAS PASKIRTIS OBJ_ID NUOMON Vilnius Žaliųjų Ežerų g. Namų valdų žem Per maža 50% ir daugiau Vilnius Tylioji g. 20 Namų valdų žem Per didel 20-50% Vilniaus m. sav. Daškūnų k. Žems ūkio žem Per didel 20-50% 21.3 Klaipdos r. sav. Gindulių k. Žems ūkio žem Per maža 20-50% 24.4 Lazdijų r. sav. Straigišks k. Žems ūkio žem Per maža 50% ir daugiau 57.6 Vilnius Pylimlių g. / Vilniaus m. sav. SB " Sodininkų bendrijų žem Per didel 20-50% 21.3 Klaipdos r. sav. Gindulių k. Žems ūkio žem Per maža iki 20% 57.4 Vilnius Biruts g. 14 Namų valdų žem Per maža iki 20% Public notice & convenient to taxpayers; correcting of actual errors; forum and discussion 6

7 Appeal System (1) REGULATED by the Law on Immovable Property Tax, 2006; INSTITUTIONAL levels: 1 st level Assessing Agency State Enterprise Centre of Registers; 2 nd level County Administrative Court; 3 rd level Supreme Administrative Court of Lithuania; PROCEDURE is based on the comparison of values of the same taxable property, estimated by mass appraisal and single property appraisal. The difference between values has to be more than 20% (after the most recent amendments in the Law more than 10%); Appeal System (2) 1st level: Number of appeals during 2006/ (approximately 3000 property objects, 0.65% from all taxable property objects): 458 approved new taxable values, according to the single property valuation; 811 rejected due to the lack of necessary documents; 31 recalled by taxpayers; 317 rejected because of inaccurate single property valuation. 2 nd level: Vilnius County Administrative Court 53 cases; 3 rd level: Supreme Administrative Court of Lithuania 16 cases. 7

8 Sales Data On-line Search System (More than sale prices) Transaction type Municipality, address Type of real estate use Real estate data : Wall material Price level Object No in transcation Zone Area Search Result 8

9 Possibility to Make International Request - EULIS Result of EULIS Request 9

10 Residential Property Price Index Spreadsheet for Determining Market Value with Time Adjustment Function 10

11 Result Made by Spreadsheet for Determining Market Value with Time Adjustment Function Mass Valuation Models Correction Table Unique No Vilniaus m. sav. Vilniaus m. Ukmergs g. 281 Model No 1804 Value, LTL Valuation date Name of attribute Type of attribute Importance Importance in attributes of an mass valuation object model Importance in appeal report Model Total area Scalar 1039,19 0, ,85 attributes using RP Register data Zone Scalar , ,8 Purpose of use Scalar Trade 1 1,02 Year of Scalar , construction completion Wall material Scalar Metal with a 0, ,8 framework Heating Binary Central heating 1 1,05 Sewage Binary Local sewage 1 0,9 Object type Binary Non-residential 1,1 1 building Total area Value 1039, Auxiliary area Value 640, Additional Pollution 10% ,9 attributes Noise -5% ,95 Value, LTL:

12 Analitical Data for Decision Makers Distribution of normative value and market value of land for agricultural use Žems ūkio paskirties žems verčių, nustatytų masiniu būdu ir nominalių pasiskirstymas pgl masinio vertinimo vieneto verčių intervalus Lt iki 500 lt/ha lt/ha lt/ha lt/ha lt/ha lt/ha lt/ha lt/ha lt/ha lt/ha lt/ha lt/h lt/h lt/h lt/ lt ir daugi Total number of parcels Total area, ha Total MA value, Lt Total normartive value, Lt Analitical Data for Decision Makers Distribution of normative value and market value of household land Namų valdų žems verčių, nustatytų masiniu būdu ir nominalių pasiskirstymas pgl masinio vertinimo vieneto verčių intervalus Lt Iki Lt/ Lt/ Lt/ ir d Total Number of parcels Total area, ha Total MA value, Lt Total normative value, Lt 12

13 Concluding Remarks The market value and the taxable value of real property computed on the market basis is the most easy to explain according to a common system of criteria and factors. Comprehensive information about the real property object appraised and generalized information about all evaluated objects allows assessing the opportunities and expedience of probable appeals. To a valuer and taxpayer, this information serves as an analytical material that may be analysed in his appeal procedure. Valuer can use this system in two ways: Complement model with factors, which, in his opinion, were not evaluated but are important for determining a Market Value; Create a new model and calculate newly the importance of evaluated or not evaluated factors, and obtain alternative (appellant) Market Value. International awards quality evidences IAAO IRRV

14 Thank you 14